HomeNewsMoU signed for development of MDEA plant in PlasChem Park, Jubail

MoU signed for development of MDEA plant in PlasChem Park, Jubail

The Dubai World Islands Project
The Dubai World Islands Project

A Memorandum of Understanding has been signed for the development of the MDEA plant in PlasChem Park, Jubail, Saudi Arabia. The agreement was signed between Dow Saudi Arabia and the Al-Hejailan Group. The two will reportedly form a joint venture that will design, build and operate the methyl diethanolamine (MDEA) plant in the PlasChem Park. 

As per the terms of the agreement, Al-Hejailan Group will hold a 25% share of the company. Dow on the other will hold a 75% share. Al-Hejailan will build and operate the facility using Dow’s manufacturing technologies. In addition to supplying its technology, Dow will also be responsible for marketing the plant’s production of MDEA.

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The construction of the MDEA plant in PlasChem Park is expected to begin in 2024. It will come online in 2025. 

Aim for the PlasChem Park MDEA plant in Jubail

The MDEA plant in PlasChem Park aims to provide raw materials to a new Dow facility, further enabling growth in high-performance gas treating derivatives. Moreover, the plant also aims to meet the growing demand for natural gas purification within Saudia Arabia as well as in the broader Middle East region. 

Also Read: Qassim-Madinah Power Interconnection Project in Saudi Arabia Completed

The CEO of Al-Hejailan Group spoke about the project. Faisal J. Al-Hejailan noted that Saudi Arabia is an essential player in both the global and regional petrochemicals market. Thus, the company is beyond excited to have signed the MoU for the MDEA plant in PlasChem Park Project. Faisal J continued by adding that the agreement and project align with the company’s strategy of participating in the downstream industry.

With similar remarks, the president and CFO at Dow also commented on the project. Howard Ungerleider said that the project is an eloquent demonstration of the deliverance of solutions. More especially, solutions that will significantly contribute to the energy transition. 

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